Remortgaging in the market cycle

Sometimes you can hear advice to do refinancing as an investment strategy. Idea is to leverage your finances to the max, to accelerate growth by acquiring more properties in a shorter time. 

Instead of saving money over a longer period for a down payment, the alternative is to remortgage your current property which has increased in value, paying off the old mortgage and keeping the difference for a down payment for the next investment. More investments with the positive cash flow you have, the more income you earn.

While this is a reasonable strategy for recovery and expansion phases of the property cycle, I would not recommend doing this in a recession. Lose an asset you could.

Overleveraging is never a good idea. Take care of your property, tenants, investors, and lenders.

Wish you a great day. ♥ Smile & Be present! 🐝 Invest in GPS & Real Estate  ♥

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